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Australand now holds 1316 contracts still to settle, 38 per cent more than last year.

The residential division is targeting a 15 to 20 per cent increase in earnings before interest and tax for the full 2012 financial year compared with 2011.

Deutsche Bank analysts said that despite the challenging housing conditions, Australand’s sales targets were supported by the increasing number of contracts on hand.

UBS analysts said it was a solid result in a difficult residential environment, despite Victoria showing signs of further difficulty.

Mr Johnston said while the group had made improvements in its return on average capital employed, it was unlikely that it would reach its target return of 12 per cent for the 2012 financial year.

Earnings from the Commercial and Industrial division were lower, at $65 million compared with $86 million in the previous corresponding period, reflecting ongoing weakness in business confidence. However forward workload was up compared with December.

The industrial and office investment portfolio delivered a 7 per cent increase in recurrent earnings, driven by 3.2 per cent rental growth and income from developments that were completed in 2011.

The group confirmed that the full-year distributions would be 21.5¢ per stapled security.

Throughout the year the stock has traded at a significant discount to its net tangible asset valuation of $3.46 per security.

Mr Johnston said investors in property stocks had been cautious and favoured real estate investment trusts that had a focus on income with less exposure to development risk. He expected some change as yields on other property stocks had dropped.